At the China Industrial Gas Industry Association Annual Meeting and Gas Industry Development Seminar held in Hangzhou on September 4–5, Sun Guomin, Vice Chairman and Secretary-General of the China Industrial Gas Industry Association, highlighted that the petrochemical, chemical fertilizer, and coal chemical industries have become the largest consumers of industrial gases, surpassing the steel industry. This shift reflects a growing demand for industrial gases across various sectors.
Industrial gases serve as the backbone of modern industry. According to international gas authorities, China's industrial gas market is considered the most dynamic globally, with an expected annual growth rate of around 15%. This rapid expansion is driven by increasing industrialization and technological advancements.
The role of gases in the production of the "three major chemicals"—such as ammonia, ethylene, and aromatic hydrocarbons—is critical. Oxygen, for example, plays a key role in oxidation reactions and is used as a gasification agent in the production of synthetic ammonia. Nitrogen acts as a protective gas during sealing, replacement, and safety procedures. During the "Eleventh Five-Year Plan" period, China planned to upgrade several large oil refineries and chemical plants, establishing new million-ton ethylene and aromatic hydrocarbon production bases. These projects required significant amounts of industrial gases and were supported by large-scale air separation facilities, which greatly boosted the gas industry.
In addition, emerging technologies such as coal-to-oil, coal gasification combined cycle power generation, liquefied natural gas (LNG) receiving terminals, smelting reduction ironmaking, and hydrogen energy are creating new opportunities for the industrial gas sector.
Delegates at the meeting also emphasized that chemical industry parks will become the primary model for future petrochemical projects. The "integrated production and socialized supply" model of industrial gases aligns well with the principles of a circular economy and is expected to be widely adopted. Under this model, a third-party company invests in building and operating gas production and supply facilities within the park. Through long-term contracts, it centralizes the supply of all or most types of industrial gases needed by enterprises in the park, efficiently utilizing gases produced by different companies during their operations.
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